International Business Machines (IBM)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 8,678,000 | 1,013,000 | 5,867,000 | 4,230,000 | 9,491,000 |
| Revenue | US$ in thousands | 61,860,000 | 60,530,000 | 57,350,000 | 55,179,000 | 57,714,000 |
| Pretax margin | 14.03% | 1.67% | 10.23% | 7.67% | 16.44% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $8,678,000K ÷ $61,860,000K
= 14.03%
The pretax margin of International Business Machines Corp. has varied over the past five years. In 2023, the pretax margin improved significantly to 14.05% compared to 1.91% in 2022. This substantial increase indicates a more efficient management of expenses and higher profitability before accounting for taxes in the most recent year. The company's performance in 2023 surpassed that of 2021 when the pretax margin stood at 8.43%. However, it remains lower than the levels seen in 2019 (13.18%) and 2020 (6.30%). Overall, the upward trend in the pretax margin from 2022 to 2023 suggests that International Business Machines Corp. has made positive strides in enhancing its profitability and operational efficiency.
Peer comparison
Dec 31, 2023